The Central Bank of Nigeria has unveiled a stricter operating framework for international money transfers, ordering all operators to route transactions through designated naira settlement accounts in a move aimed at tightening control over diaspora inflows and reinforcing transparency in the foreign exchange market.
The directive, contained in a March 24 circular signed by the Director of the Trade and Exchange Department, Dr. Musa Nakorji, requires all International Money Transfer Operators (IMTOs) to open and maintain naira settlement accounts with authorized dealer banks. The circular, published on the bank’s website, takes effect from May 1, 2026.
According to the apex bank, the measure is part of a broader effort to “enhance diaspora remittances, strengthen transparency, traceability, and effective monitoring of all transactions.”
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Under the new rules, “all IMTOs are hereby directed to open naira settlement accounts and ensure that all transactions are routed strictly through their designated settlement accounts, maintained with Authorized Dealer Banks (ADBs) in Nigeria.” The instruction effectively centralizes the processing of remittance inflows, beneficiary payouts, and related settlements within the formal banking system.
The framework introduces tighter controls on how these accounts are funded. The CBN stated that settlement accounts “shall only be credited with remittance flows and proceeds of foreign exchange conversions by licensed IMTOs (or their agents)” operating within the Nigerian foreign exchange market. IMTOs are permitted to operate multiple accounts across different banks, but must formally designate them and submit details to the regulator, with updates provided periodically.
In a further attempt to standardize the market, the central bank directed operators to anchor pricing to live market data. IMTOs “shall observe real-time market prices from the Bloomberg BMATCH and utilize this as guidance for pricing transactions with their customers and Authorized Dealers,” the circular said. The bank added that the requirement is intended to “improve price discovery, reduce information asymmetry between IMTOs and banks, and encourage increased participation in the official FX market.”
The policy also broadens the role of authorized dealer banks, allowing them to process foreign currency transfers from IMTO settlement accounts to other banks and approved participants, including licensed Bureau De Change operators. This provision is expected to improve liquidity circulation within the official market, which has struggled with fragmented supply and persistent reliance on parallel channels.
The directive pinpoints the regulator’s determination to bring a larger share of Nigeria’s diaspora remittances, one of the country’s most stable sources of foreign exchange, into the formal system. For years, a significant portion of these inflows has bypassed official channels, driven by exchange rate differentials and operational inefficiencies.
The CBN is attempting to close that gap, improve visibility over cross-border flows, and strengthen its ability to manage the naira by enforcing stricter routing and pricing rules. The emphasis on compliance is explicit. Operators are required to maintain detailed transaction records and adhere fully to anti-money laundering, counter-terrorism financing, and counter-proliferation financing standards.
“This directive takes effect from May 1, 2026. Please note and ensure compliance,” the circular stated.
Analysts say the success of the policy will depend much on whether the official market can offer competitive pricing and seamless execution. While tighter oversight may reduce leakages, sustained inflows will depend on user confidence, particularly among diaspora senders who often prioritize speed and exchange rates.
The move comes amid broader external pressures. Global disruptions linked to tensions involving the United States, Israel, and Iran have begun to filter into commodity markets, affecting everything from energy prices to agricultural inputs. Dangote Industries Limited said demand for its fertilizer products has surged amid supply constraints, highlighting how geopolitical shocks are reshaping trade flows and intensifying the need for stable foreign exchange buffers.
Thus, the CBN’s latest directive is part of a continuing effort to assert greater control over currency flows and maintain the relative stability that the naira has recently recorded.